Rare-Earth Jitters Spark Fresh US-China Trade Deal
Worried about who controls the world’s rare-earth supply? Turns out, so is Washington. According to a new Global Trade Research Initiative (GTRI) analysis, growing anxiety over rare-earth minerals, the magic dust behind semiconductors, smartphones, and clean energy tech, pushed the US and China back to the negotiating table.
President Donald Trump confirmed the much-anticipated deal on Thursday, which analysts say is less about politics and more about supply chain panic. Rare-earths are the lifeblood of chipmaking and green energy, and China holds most of the cards, leaving the US feeling exposed.
But Beijing knows it’s got more than rare-earths up its sleeve. America still leans heavily on China for everything from solar panels and pharmaceutical ingredients to good old consumer goods. So even with tariff cuts, China’s got plenty of leverage left to play with.
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Trump And Xi Confirm Limited Trade Pact in Busan
US President Donald Trump and Chinese President Xi Jinping, on October 30, 2025, agreed to a limited trade pact in Busan.
Washington will cut tariffs on Chinese goods by 10 per cent, reducing the so-called “fentanyl-related” import duty from 20 per cent to 10 per cent.
US tariffs on Chinese imports after the trade deal will stand at 47 per cent, which was earlier 57 per cent.
In exchange, Beijing committed to buy more of US agricultural products–particularly soybeans, America’s largest farm export valued at USD 24.5 billion in 2024–and to continue exports of rare-earth minerals for at least a year.
China’s Export Strength Persists Despite Tariffs
According to the GTRI data, China’s exports to the US rose from USD 28.8 billion in May 2025 to USD 34.3 billion in September 2025, underscoring no impact of US tariffs.
“Weak domestic manufacturing and persistent Chinese cost advantages have kept American buyers reliant on Chinese supply,” the analysis added.
India’s Exports To US Plunge As Others Gain
By contrast, GTRI added that India’s exports to the US plunged 37 per cent during the same period–from USD 8.8 billion to USD 5.5 billion–as other Asian suppliers with lower tariff exposure captured market share.
(With Inputs From ANI)
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